Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Embattled retailer Laura Ashley has shuttered 70 of its stores leaving almost 721 people out of work, administrator PWC has said.
The ‘Big Four’ accountancy firm said it will be working with those employees to help them understand “what this means for their roles” and provide all “necessary support” including finding alternative employment.
The joint administrators Rob Lewis and Zelf Hussain will continue to trade the remaining business while discussions take place with interested parties with the aim of securing a buyer.
The remaining 77 UK stores will be open as normal subject to Government guidance around Covid-19.
Hussain said: “Like many other retailers Laura Ashley has been hit hard by market headwinds and weaker consumer spending. For a retail sector already under severe pressure, the current environment driven by Covid-19 is unprecedented.
“We will continue to closely monitor the Government advice in relation to Covid-19 and factor that into our strategy as the situation develops.
He added: “In the meantime, 77 outlets remain open for business and we are very grateful for the hard work that all of the staff will put in over the coming days to help us find a future for the business.”
It comes after the fashion retailer fell into administration last week (17 March), after it revealed that the coronavirus outbreak had an “immediate and significant impact on trading”.
The company revealed that, while trading had improved by 24% year-on-year for the seven weeks up to 13 March, as well as directors being “encouraged” by this strong performance, the Covid-19 outbreak has put a stop to the positive trading.
It added that based on the company’s revised cashflow forecasts and the increased uncertainty facing the group, it will not be in a position to draw down additional funds from third party lenders in a “timely manner sufficient to support working capital requirements”.
